1
                                                                 [Exhibit 99(f)]

               [Excerpt from NorAm Second Quarter Form 10-Q for 1997]

K.       As more fully described in the Company's 1996 Report on Form 10-K, the
Company is currently working with the Minnesota Pollution Control Agency
regarding the remediation of several sites on which gas was manufactured from
the late 1800's to approximately 1960.  The Company has made an accrual for its
estimate of the costs of remediation (undiscounted and without regard to
potential third-party recoveries) and, based upon discussions to date and prior
decisions by regulators in the relevant jurisdictions, the Company continues to
believe that it will be allowed substantial recovery of these costs through its
regulated rates.

         In addition, the Company has identified sites with possible mercury
contamination based on the type of facilities located on these sites.  The
Company has not confirmed the existence of contamination at these sites, nor
has any federal, state or local governmental agency imposed on the Company an
obligation to investigate or remediate existing or potential mercury
contamination.  To the extent that any compliance costs are ultimately
identified and quantified, the Company will provide an appropriate accrual and,
to the extent justified based on the circumstances within each of the Company's
regulatory jurisdictions, set up regulatory assets in anticipation of recovery
through the ratemaking process.

         On June 18, 1997, the Mississippi Department of Environmental Quality
advised the Company that the Company, through its Entex Distribution Division,
had been identified as a potentially responsible party at a former manufactured
gas plant site in Biloxi, Mississippi, see Note L.

         On October 24, 1994, the United States Environmental Protection Agency
advised MRT that it had been named a potentially responsible party under
federal law with respect to a landfill site in West Memphis, Arkansas, see Note
L.

         On December 18, 1995, the Louisiana Department of Environmental
Quality advised the Company that it had been named a potentially responsible
party under state law with respect to a hazardous substance site in Shreveport,
Louisiana, see Note L.

         While the nature of environmental contingencies makes complete
evaluation impractical, the Company is currently aware of no other
environmental matter which could reasonably be expected to have a material
impact on its results of operations, financial position or cash flows.
   2
L.   On June 18, 1997, the Mississippi Department of Environmental Quality
advised the Company that the Company, through its Entex Distribution Division,
had been identified as a potentially responsible party at a former manufactured
gas plant site in Biloxi, Mississippi. Considering the information currently
known about the site, the Company does not believe that the matter will have a
material adverse effect on the financial position, results of operations or cash
flows of the Company.

     On August 14, 1996, an action styled Shaw vs. NorAm Energy Corp., et al.
was filed in the District Court of Harris County, Texas by a purported NorAm
stockholder against the Company, certain of its officers and directors and HI
to enjoin the merger between the Company and HI (see Note B) or to rescind such
merger and/or to recover damages in the event that the HI merger transaction
is consummated. The complaint alleges, among other things, that the merger
consideration is inadequate, the Company's Board of Directors breached its
fiduciary duties that HI aided and abetted such breaches of fiduciary duties.
In addition, the plaintiff seeks certification as a class action. The Company
believes that the claims are without merit and intends to vigorously defend
against the lawsuit. Management believes that the effect on the Company's
results of operations, financial position or cash flows, if any, from the
disposition of this matter will not be material.

     On October 24, 1994, the United States Environmental Protection Agency
     advised MRT, a wholly-owned subsidiary of the Company, that MRT, together
     with a number of other companies, had been named under federal law as a
     potentially responsible party for a landfill site in West Memphis, Arkansas
     and may be required to share in the cost of remediation of this site.
     However, considering the information currently known about the site and the
     involvement of MRT, the Company does not believe that this matter will have
     a material adverse effect on the financial position, results of operations
     or cash flows of the Company.

     On December 18, 1995, the Louisiana Department of Environmental Quality
     advised the Company that the Company, through one of its subsidiaries and
     together with several other unaffiliated entities, had been named under
     state law as a potentially responsible party with respect to a hazardous
     substance site in Shreveport, Louisiana and may be required to share in the
     remediation cost, if any, of the site. However, considering the information
     currently known about the site and the involvement of the Company and its
     subsidiaries with respect to the site, the Company does not believe that
     the matter will have a material adverse effect on the financial position,
     results of operations or cash flows of the Company.

     The Company is a party to litigation (other than that specifically noted)
     which arises in the normal course of business. Management regularly
     analyzes current information and, as necessary, provides accruals for
     probable liabilities on the eventual disposition of these matters.
     Management believes that the effect on the Company's results of operations,
     financial position or cash flows, if any, from the disposition of these
     matters will not be material.